Shochiku Co. completed its retreat from satellite broadcasting Tuesday, selling BS Shochiku Tokyu to cable operator JCOM just weeks before the channel’s planned closure. The transaction allows Japan’s oldest major film studio to cut losses from a failed three-year venture into free-to-air television.
The 130-year-old entertainment company will write off ¥600 million ($3.8 million) in outstanding debt to the broadcaster while transferring all shares to JCOM for an undisclosed sum. Shochiku first acquired the remaining stakes from partners including Tokyu Corp. and Zaimax Group before completing the sale to JCOM.
The exit marks Shochiku’s acknowledgment that its broadcasting experiment failed to generate sustainable returns despite leveraging the company’s extensive library of kabuki performances, traditional theater content, and original programming. BS Shochiku Tokyu launched in March 2022 with ambitions to create a cultural programming destination but struggled to build audience and advertising revenue.
Shochiku announced in February its intention to withdraw from BS broadcasting, citing the need to focus resources on more profitable core operations. The company has since raised earnings forecasts, pointing to stronger-than-expected box office performance from film releases including popular franchises.
The broadcasting unit’s financial struggles highlight the challenges facing traditional media companies attempting to expand into new platforms. While Shochiku’s film production and theater operations benefit from established distribution networks and loyal audiences, the satellite channel faced intense competition from established broadcasters and streaming services.
For Shochiku, which trades on the Tokyo Stock Exchange with a market value of $1.21 billion, the sale removes a drag on profitability while allowing management to concentrate on areas where the company maintains competitive advantages. The studio’s film division continues producing content for theatrical release and streaming platforms, while its theater operations manage historic venues including Tokyo’s Kabuki-za.
The company has also expanded into gaming through its Shochiku Game Business Department, reflecting efforts to diversify revenue streams beyond traditional entertainment formats.
JCOM’s acquisition of the channel, which will relaunch as “J:COM BS” on July 1, provides an exit strategy that prevents total asset loss while transferring operational responsibilities to a company with existing broadcasting infrastructure. However, the undisclosed transaction price suggests Shochiku likely recovered minimal value from its initial investment.
The deal underscores the difficulty established entertainment companies face when venturing outside their core competencies in an increasingly fragmented media landscape where scale and distribution capabilities determine success.
